November canola is up $20.60/mt, December soybean oil is down .57 cents/pound, November European rapeseed is up 9.50 euro/mt and September Malaysian palm oil is down .37%. December oats are up 7 1/4 cents/bushel while November European corn is up 3.25 euros/mt. September crude oil is down $.29/barrel, August ULSD is up $.0417/gallon, and the September Canadian dollar is down .00270 at .71280 on a weak CPI report. The September U.S. Dollar Index is up .254 at 100.840 and the August Brazilian real is up .00090 at 0.19590.

Grain and oilseed markets are oddly mixed in unusually volatile trade. The gaps higher to start Sunday night's session remain in corn and soybeans with corn gapping over $4.70/bushel resistance while November soybeans set new contract highs following their gap higher. Soybeans have extended gains on concerns over dry weather to start August with Monday's rally coming within a dime of the 2026 highs on the nearby continuous chart. A surge in soybean meal accompanied the rally in soybeans with soybean oil reversing lower on an unwinding of the long soybean oil/short soybean meal spread.

The losses in soybean oil come despite another strong rally in diesel prices which certainly helped European rapeseed and canola prices. Both of those two markets have now set new contract highs with today's rally.

Although corn is still strong and challenging its 100-day moving average, it did not make new highs in the day session the way soybeans did. Despite having arguably better fundamental support with the production shortfall sure to come in Europe and the near-halt in shipping of corn out of Ukraine. Those factors should help with the rally, potentially leaving the gap as a breakaway gap. Last Monday's attempt at the same formation was negated by a weak close Monday and lower trade on Tuesday. The bulls will want to avoid a repeat this week, and all indications suggest they should be able to.

Most energy markets are slightly lower on the same old nonsense rumors that the U.S. has suggested a 10-day ceasefire to Iran to see if diplomatic efforts can be restored. Given the confidence Iran is showing in controlling the Strait of Hormuz, and now potentially the access to the Red Sea, such a ceasefire proposal seems very unlikely to have any real merit. Not to mention the lives lost in Jordan that were supposed to trigger a sharp escalation of attacks by the U.S. (on Iran).

Outside markets are agreeing with that assessment as bonds are weakening as the morning progresses on inflation concerns and the resulting increase in interest rates are supporting a rally in the U.S. dollar. Stocks are mixed, playing along with the ceasefire rhetoric games.

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